Affordable Housing Special Beneficiary District - Community Development And Housing - CA Health And Safety

Section § 34191.30

This law section defines key terms related to affordable housing and the special districts that help finance it. "Affordable housing" refers to homes available for people with low to extremely low incomes. A "beneficiary district" is a temporary local government entity designed to manage property tax revenues for the purpose of boosting affordable housing projects in its area. It specifically deals with property tax revenues that cities or counties would normally receive, using them to promote housing affordability.

For purposes of this part, the following definitions shall apply:

(a) “Affordable housing” means a dwelling available for purchase or lease by persons and families who qualify as low or moderate income, as defined in Section 50093, very low income households, as defined in Section 50105, or extremely low income households, as defined in Section 50106.

(b) “Beneficiary district” is an affordable housing special beneficiary district established pursuant to this part that exists for a limited duration as a distinct local governmental entity for the express purposes of receiving rejected distributions of property tax revenues and providing financing assistance to promote affordable housing within its boundaries.

(c) “Distributions of property tax revenues” means all property tax revenues a city or county would be entitled to receive pursuant to Part 1.85 (commencing with Section 34170).

affordable housing low income housing moderate income family very low income households extremely low income households beneficiary district special beneficiary district property tax revenues rejected distribution financing assistance local governmental entity housing finance temporary district housing promotion income qualification

(Added by Stats. 2016, Ch. 453, Sec. 1. (AB 2031) Effective January 1, 2017.)

Section § 34191.35

This law outlines the creation and conditions of an "affordable housing special beneficiary district" when a successor entity, like a local authority, gets a completion finding. This district covers the same area as the successor entity.

The district will dissolve either 90 days after the Department of Finance approves its dissolution or 20 years after the completion finding, whichever comes first. Once it ceases to exist, it can't conduct any business, and its funds go to the local government that previously declined property tax revenue allocations.

The members of the district's board will lose their positions when the district ends. Any rights, like loan repayments, also transfer to the aforementioned local government.

(a) Commencing when a successor entity, including a designated local authority established pursuant to subdivision (d) of Section 34173, receives a finding of completion pursuant to Section 34179.7, there exists, within the same geographical boundaries of the jurisdiction of that successor entity, an affordable housing special beneficiary district.

(b)

(1) A beneficiary district shall cease to exist on the earlier of the 90th calendar day after the date the Department of Finance approves a request to dissolve the successor entity pursuant to Section 34187, or the 20th anniversary of the date that the successor entity received a finding of completion pursuant to Section 34179.7. On and after the date a beneficiary district ceases to exist, the beneficiary district shall not have the authority to conduct any business, including, but not limited to, taking any action or making any payment, and any funds of the beneficiary district shall automatically transfer to the city or county that rejected its distributions of property tax revenues pursuant to Section 34191.45 that were thereafter directed to the beneficiary district.

(2) Notwithstanding Section 34191.40, the terms of the members of the board of a beneficiary district shall expire on the date the beneficiary district ceases to exist.

(3) Any legal right of the beneficiary district on or after the date the beneficiary district ceases to exist, including, but not limited to, the right to repayment pursuant to a loan made by the beneficiary district, is the right of the city or county that rejected its distributions of property tax revenues pursuant to Section 34191.45 that was thereafter directed to the beneficiary district.

affordable housing district successor entity completion finding Department of Finance approval dissolution timeline property tax revenue board membership expiration legal rights transfer loan repayment rights local authority geographical boundaries government allocation beneficiary district dissolution property tax distribution rejection entity jurisdiction

(Added by Stats. 2016, Ch. 453, Sec. 1. (AB 2031) Effective January 1, 2017.)

Section § 34191.40

This section outlines how a beneficiary district is governed. The board in charge consists of five members: three city council or county board members, the treasurer, and one public member living in the district. The board chooses a chairperson from its members. Each term lasts four years, and vacancies are filled for the remainder of the term. No member receives a salary for their role.

(a) A beneficiary district shall be governed by a board composed of the following five members:

(1) Three members of the city council, if a city formed the redevelopment agency, or three members of the board of supervisors, if a county formed the redevelopment agency. The three members shall be appointed by the city council or board of supervisors, as applicable.

(2) The treasurer of the city or county that formed the redevelopment agency.

(3) One member of the public who lives within the boundaries of the beneficiary district who is appointed by the city council or county board of supervisors of the city or county that formed the redevelopment agency.

(b) The board shall elect one of its members as the chairperson.

(c) Each member shall serve a term of four years from the date of his or her appointment. Vacancies on the board shall be filled by the appointing authority for a new four-year term. A member may be reappointed.

(d) Each member shall serve without compensation.

beneficiary district board city council members county board members treasurer public member appointment chairperson election four-year term vacancy filling non-compensation redevelopment agency governance

(Added by Stats. 2016, Ch. 453, Sec. 1. (AB 2031) Effective January 1, 2017.)

Section § 34191.45

This law allows a city or county to choose not to receive its share of property tax revenues through a formal ordinance or resolution. Once a city or county opts out, they can't claim or control these tax distributions, and the funds are redirected to a beneficiary district instead.

However, this doesn't apply to any city or county with a redevelopment agency unless they either became the agency's successor and lack a required completion finding, or their designated local authority also lacks this finding.

(a) Notwithstanding any other law, a city or county may by ordinance or resolution reject its distributions of property tax revenues that it would otherwise receive pursuant to Part 1.85 (commencing with Section 34170). Except as provided in subdivision (b) of Section 34191.35, on and after the date that a city or county rejects its distributions of property tax revenues, the city or county shall not have any claim to, or control over, the distributions of property tax revenues it may have otherwise received pursuant to Part 1.85 (commencing with Section 34170), and the county auditor-controller shall transfer all of the distributions of property tax revenues to the beneficiary district.

(b) This section shall not apply to any city, county, or city and county that formed a redevelopment agency if either of the following apply:

(1) The city, county, or city and county became the successor agency to the redevelopment agency and did not receive a finding of completion pursuant to Section 34179.7.

(2) The designated local authority of the redevelopment agency, formed pursuant to subdivision (d) of Section 34173, did not receive the finding of completion pursuant to Section 34179.7.

property tax revenues city ordinance county resolution distribution rejection beneficiary district redevelopment agency successor agency finding of completion county auditor-controller local authority redevelopment successor tax revenue transfer property tax distribution opt-out process

(Added by Stats. 2016, Ch. 453, Sec. 1. (AB 2031) Effective January 1, 2017.)

Section § 34191.50

This law section outlines how a beneficiary district can use funds to promote affordable housing. They can issue bonds, offer financial help such as loans and grants, or take other necessary actions, but must ensure all obligations are settled before the district ceases to exist.

A key rule is that the district cannot create debt obligations requiring action beyond its lifetime, like issuing bonds that need repayments after the district is dissolved.

(a) A beneficiary district shall use any funds provided to it for the express purpose of promoting the development of affordable housing within its boundaries.

(b) A beneficiary district may promote the development of affordable housing by doing any of the following:

(1) Issuing bonds to be repaid from the distributions of property tax revenues directed to the beneficiary district.

(2) Providing financial assistance for the development of affordable housing, including, but not limited to, providing loans, grants, and other financial incentives and support.

(3) Taking other actions the board determines will promote the financing of the development of affordable housing within its boundaries.

(c) A beneficiary district shall not undertake any obligation that requires an action after the date it will cease to exist, including, but not limited to, issuing a bond that requires any repayment of the bond obligation after the date the beneficiary district will cease to exist.

affordable housing development property tax revenues bonds issuance financial assistance loans for housing grants for housing housing incentives beneficiary district actions housing financing district expiration debt obligations financial support for housing housing promotion district boundaries housing board decisions

(Added by Stats. 2016, Ch. 453, Sec. 1. (AB 2031) Effective January 1, 2017.)

Section § 34191.55

This law section requires a beneficiary district to follow the Ralph M. Brown Act and the California Public Records Act, which are rules designed to ensure transparency and open access to public meetings and records. Additionally, if a beneficiary district is dissolved, any public records it held will become the property of the city or county that previously chose not to accept its share of property tax money.

(a) A beneficiary district shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code) and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(b) When a beneficiary district ceases to exist pursuant to subdivision (b) of Section 34191.35, a public record of the beneficiary district shall be the property of the city or county that rejected its distributions of property tax revenues pursuant to Section 34191.45.

beneficiary district Ralph M. Brown Act California Public Records Act public meetings public records transparency open access dissolution property tax revenue record ownership city property county property distribution rejection tax revenue allocation government transparency

(Amended by Stats. 2021, Ch. 615, Sec. 257. (AB 474) Effective January 1, 2022. Operative January 1, 2023, pursuant to Sec. 463 of Stats. 2021, Ch. 615.)